Property Insurance Coverage
Coverage for direct or indirect property loss that can be analyzed under the following headings:
- Peril a particular peril may be included or excluded. For example, the Standard Fire Policy names specific perils such as fire and lightning; the ALL RISKS policy covers all entities unless specifically excluded.
- Property a policy may cover only specified or scheduled property such as an automobile; all of an insured's personal property up to a specified amount on each item regardless of its location (PERSONAL PROPERTY FLOATER); or all property of the insured with no specific limit (BLANKET POLICY).
- Person the person covered must be specifically identified as the named insured in a policy. Residents of that household also covered are the spouse, relatives of either, and anyone else below the age of 21 under the insured's care, custody, and control.
- Duration policies are usually written for one year; a personal automobile policy is usually for six months.
- Limits limits are stated as a face amount in a policy. The insurer will never pay more than the lesser of the following amounts: limits stated in a policy; actual cash value of destroyed or damaged property; or amount resulting from the coinsurance formula.
- Location a policy may cover perils that strike only the premises of the insured, or it may provide off-premises coverage subject to a geographic restriction. For example, the personal automobile policy covers only the U.S. and Canada.
- HAZARD the exclusions and suspension section states that if the insured increases a covered hazard the company can suspend or exclude the coverage. For example, the insured starts processing explosives at home.
- LOSS insurance contracts cover either direct or indirect (CONSEQUENTIAL) loss. For example, a homeowners policy covers damage due to the direct loss by fire, lightning, and other perils. It does not cover consequential losses such as loss of income by an insured who is unable to go to work because of fatigue.
Popular Insurance Terms
Coverage tailored to the particular requirements of an insured, when a standard policy cannot be used to provide coverage for real or personal property. A manuscript policy is often written ...
Reinsurance term under which the reinsurer exercises its faculty or prerogative to insure a risk or reject a risk from a ceding company. ...
Length of employment as measured to determine eligibility, vesting, and benefit levels for employee participants in tax qualified pension plans. There is often a requirement that years of ...
Coverage through an endorsement to the personal automobile policy (pap) to extend its protection against accidents within a 25 mile radius of the U.S. border. This coverage is excess over ...
Cost of the assets listed on the accounting records of the company. These assets include the following: real estate (to include any adjustments for depreciation), transportation equipment ...
Legal decision wherein proceeds of a life insurance policy on which the decedent's corporation paid the premiums within three years of his or her death are not includable in the decedent's ...
Coverage that will indemnify the insured for the expenses, up to the limits of the policy, if a building is damaged by a peril such as fire, and zoning requirements and/or building codes ...
Number of times a loss occurs. ...
Same as term Application: written statements on a form by a prospective insured about himself, including assets and other personal information. These statements and additional information, ...
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